You want to open a user account on the Internet and are asked for your personal data. The question is: How can you and the account provider be sure that no one but you will use your identity for this purpose? There are “identification procedures” to protect your data and combat criminal activities. With their help, you can legally prove your identity. This is important for any business relationship you want to enter — especially for sensitive transactions like money transactions. Wattify uses procedures that meet the highest security standards and make your registration in our app fast and convenient. So it doesn’t feel like you’re going on a blind date. Read more about how Wattify verifies your data, the different identification methods and why data security is so crucial in the financial sector here.
What is KYC and how does it ensure secure business conditions in the financial sector?
If a company in the financial sector wants to distribute a product or service, the law requires it to verify the identities of its customers and clients. KYC is the internationally standardized legitimation check for this purpose. It stands for “Know Your Customer.” Sellers and customers should know who they are dealing with. This protects both sides. With KYC, financial service providers are able to prevent white-collar crime. Fraudsters cannot easily open accounts in false names, move sums from A to B via dummy companies and launder money.
Organizations that pose a threat to society, such as those involved in terrorism, can be denied access to financial sources. In addition to identity, the KYC process also verifies the customer’s eligibility to conduct financial transactions, checks the relevant background and classifies the risk he or she is expected to pose. KYC relies on digital technology. This makes verification processes fast, cost-effective and available everywhere.
What are the identification procedures for KYC?
The identification procedures for KYC are tied to the legal requirements for the financial sector. To verify your data, you have several options, offline and online. As a rule, these are as follows:
1. Going to the branch
If the financial service provider has a branch, you can show your documents to an employee on site and use them to legitimize yourself.
2. Video chat
You will be connected to an employee via video. You show them your documents in front of the camera. They are saved as photos for verification and forwarded digitally. This can be done conveniently from home and saves time and paperwork.
3. The online ID function of the ID card
You can activate a function for your ID card (if you haven’t already done so) to identify yourself online without going to the authorities or making a video call. The whole thing is called “eID” (electronic proof of identity). How to get and use an eID is explained in the next section.
Postident and eID — this is how verification works at Wattify
For your registration on our app, you can use Deutsche Post as a service provider. The procedure is called “Postident”. You can personally visit one of the many post offices throughout Germany and verify your identity there with your ID and a cover letter. You can find out which branch near you offers on-site verification on the Deutsche Post website.
If you prefer to do it from the comfort of your sofa, we also offer a legitimacy check via video chat. The security features and holograms of your ID document are scanned. The service provider forwards the relevant contract data to Wattify, as in the on-site identity check. If you don’t want to walk into a branch or chat into the camera, Wattify provides a third option for you:
The online ID function with eID.
The method behind it is quite simple. You only need two things: your ID card with activated eID function and your smartphone (with NFC function) as a card reader. You can use the online ID function anytime and anywhere. It saves you the hassle of dealing with the authorities and paper, and the coolest thing about it is that once you’ve activated it for registration with Wattify, you can use it to identify yourself online again and again. It’s worth it to use the eID function. Just follow these steps:
Activate your eID
When you received your ID card, you received the activation documents and a personal PIN. If you no longer have either of these at hand, you can use a government service free of charge that will send you a new activation code and PIN with a PIN reset letter. You can find the link here.
Download the Postident App
You can find it for free in any major app store. You can use it to complete the identification process.
Complete the identification proces
The identification process starts with a QR code or a process number from Wattify. Then you enter your eID PIN and hold your ID card to the NFC interface of your smartphone. Done!
The entire process should take you less than 30 seconds. For complete security in the KYC process, Wattify has also prepared a questionnaire for you as part of the onboarding process. Here, you’ll provide answers about your previous financial experience and investment goals. This way, we further minimize the risk for you and Wattify and can tailor our approach to you individually.
From opening your account to making your first investment in just a few steps. Download the app, verify and you’re ready to go!